Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * R&D entity has an amount under this section if:
(a) a * balancing adjustment event happens in the present year for an asset * held by the R&D entity and for which:
(i) the R&D entity can deduct, for an income year, an amount under section 40 - 25, as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936 ; or
(ii) the R&D entity could have deducted, for an income year, an amount as described in subparagraph (i) if the R&D entity had used the asset; and
(b) the R&D entity is entitled under section 355 - 100 to * tax offsets for one or more income years for deductions (the R&D deductions ) under section 355 - 305 for the asset; and
(c) an amount (the section 40 - 285 amount ) is included in the R&D entity's assessable income for the asset under section 40 - 285 (after applying subsection 40 - 292(2)) for the present year .
Note: This section applies in a modified way if you have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40 - 292 of the Income Tax (Transitional Provisions) Act 1997 ).
(2) The amount is worked out as follows:
where:
"adjusted section 40- 285 amount" means so much of an amount equal to the section 40 - 285 amount as does not exceed the total decline in value.
"total decline in value" means the * cost of the asset less its * adjustable value.